Omnicom, a major player in the world of advertising, received a
new high profile client yesterday that helped the stock get off
to a good start this week. Goodyear Tire and Rubber (NYSE:GT) has
awarded OMC with its $60 million North American advertising
budget. Every positive move for OMC increases the likelihood that
management will announce a split. The company's last split was
announced in September of 1997 when the stock was trading at
$70.50. OMC closed above the 50-DMA of $86.56 today and this
event is a good sign that more gains are in the offering.
Potentially profitable positions can probably be initiated as
long as OMC stays above $$86.56. There is some resistance at
$90.00. Therefore, one may want to be patient if there is a gap
up to just below this resistance on tomorrow's open. That said, a
close above $90.00 may provide a good buying opportunity in
anticipation of a continued move on Thursday. The MACD is
accelerating its ascent and the Money Flow is making new highs.
These are two good technical signs that OMC will continue to move
higher.

Wednesday's Update:

Advertisers historically respond very positively to rate cuts.
With this being the fourth interest rate cut so far this year,
OMC should be set to take on more business from clients that now
have access to cheaper money. Today's move higher on more than
two-times average trading volume showed just how much investors
are anticipating an up tick in business for OMC. Looking at the
chart, OMC traded right up to the bottom of the gap created back
in early March. This may well turn out to be resistance, but any
move above today's high might be a good entry point into OMC, as
this would be a confirmation of the lack of overhead sellers.
Support has come in at the 5-dma recently and we will look for to
continue offering support as OMC tries to conquer resistance.
Our stops remain at $80.00 to protect on the downside.